What is an invoice?

An invoice is a document that you send to someone you have done work for, telling them to pay you. It shows them what they are paying you for.

It needs to include your:

• IRD number
• bank account details. 

You can make your own invoice using a document file or a spreadsheet. Or you can use a digital accounting service: e.g. Xero or Hnry.

What is an invoice for?

You can use our invoice template to get started and tailor it to suit your needs. Invoicing reinforces the fact that you, and all artists, should be paid for your labour.
Along with budgets, invoicing helps you keep track of income and expenses and helps ensure you and your work are being valued.

Many organisations will require you to send an invoice so they can pay you. This is especially true for registered charities whose expenses are audited every year. 

There is no standard invoicing process and each organisation or company you work with will have a different way of doing things. 

If you don’t understand what is needed, or their process is inaccessible, they should be able to support you to complete your invoice or alter their process.

It can be easy to put off doing your invoices because creating an invoice might be new to your or because it can be a bit boring but it is a neccessary part of getting paid for your work.

It is important to keep copies of your invoices for tax purposes.

Before you start

In your invoice you will need to include:

• the date of the invoice
• a unique invoice number. These should be in order so you can keep track easily: e.g. 001, 002, 003 and so on.
• your GST number if you are GST registered
• your New Zealand business number if you have one
• your full address
• the full address of the person or organisation you are invoicing
• your IRD number
• a description of the goods or services provided: e.g. date, quantity, rate and hours
• the date the payment is due
• the amount of GST to pay if you are GST registered
• your bank account details
• the amount payable.

If you can, get the contact details and address for the person you are invoicing early on, so you don’t have a delay when you are ready to get your invoices done.

Once you finish a job, invoice as soon as you can while the work is still fresh in the mind of the organisation you are working with. 

Getting paid

Most organisations pay invoices once a month – often on the 20th of the month.

If monthly invoicing and payments will cause difficulty for you, you may be able to negotiate a different payment cycle with the organisation you are working with.

Have a plan for how you will follow up if you don’t get paid on time. You might want to send a reminder email. Some accounting software does this automatically.

How you get paid

You can negotiate to have a fee split over multiple payments if that works best for you. For example, instead of invoicing for one lump sum payment of $1000, you could send four invoices for $250.

Invoicing for expenses

In addition to the fee you are charging, you can also charge for any materials or expenses you incur.

You will need to agree to this when negotiating the work and make sure you keep any invoices or receipts.

Invoicing for access costs 

If you and your client have agreed they will cover access costs related to the work, find out if they have a reimbursement process or if you need to include them in your invoice. If you need to include them in your invoice, add a line for access costs.

GST

If you are registered for GST you will need to include your GST number on your invoice.

You will also need to include the GST rate and amount as a line on your invoice.

Keeping records

It’s important to keep records for tax purposes.

You’ll need to keep a copy of:

• receipts 
• invoices you receive
• invoices you send.

For more information about tax obligations, you can talk to an accountant or to the IRD.

Disclaimer

Arts Access Aotearoa and Taha Hotu can’t provide financial advice.
If you have questions about being paid for your work, tax or other financial obligations it is important to talk to the relevant organisations or services. You can have a support person with you when you talk to them.

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“Invoicing can be complicated but I have streamlined the process by finding a template I like and that is accessible for me. Whenever I need to do an invoice I use the same one and just update it. That way I don’t have to start new each time.”

Further resources and links

• Business.govt.nz
• Connected.govt.nz support for business / self-employment
• What is a New Zealand Business Number
• MoneyHub GST Calculator
• IRD
• Hnry